Sunday, May 21, 2017

CPEC: Paki-Chini Bhai-Bhai

The details aren't very rosy for Pakistan at all - it's more like a way for Pakistan to become indentured to China. Pakistan will be able to borrow $50B to spend on infrastructure projects - contracted out to Chinese companies - and it will have to pay that money back at relatively high rates of interest, including a requirement for timebound repayment of the principal. Islam may not approve of high interest rates, but obviously China doesn't mind them. China will help to set up a lot of surveillance technology for the Pak govt, which may not be to the benefit of Pakistan's general population. The money Pakistan borrows must be spent on Chinese contractors and Chinese goods - and the terms of this deal are to be deliberately kept hidden from public scrutiny - the better to hide the kickbacks.